Government urged to bring forward spring bonus welfare payment
Finance Minister Michael McGrath said a planned package of additional cost-of-living measures will be the final round of supports before the next budget.
The Government must bring forward a spring bonus welfare payment for all benefit recipients to ease the cost-of-living crisis, the Dáil has heard.
During a motion brought forward by Sinn Féin, the party’s deputy leader Pearse Doherty called for a double payment for those relying on a working-age social welfare payment, pensioners, people with disabilities, carers, and lone parents — some 1.3m people.
He said he is calling for the fuel allowance to be extended to those in receipt of the working family payment in order to support working families on low incomes and for the establishment of a discretionary fund to provide financial support to those experiencing utility debt.
Setting out the Government’s position, Finance Minister Michael McGrath said a planned package of additional cost-of-living measures will be the final round of supports before the next budget.
Mr McGrath said the steps set to be outlined by the Government in the coming weeks have to make the best possible use of public money.
He said ministers will be carefully considering what measures to introduce or extend to ensure that any action will not result in upward pressure on inflation.
A series of existing cost-of-living measures are currently due to fall away at the end of the month.
These include the energy credit scheme for households, a reduced 9% Vat rate on hospitality, electricity, and gas; and the temporary business energy support scheme. Excise is also due to go up on petrol and diesel.
The Government has said it wants to avoid a "cliff edge" scenario, and has signalled an intent to extend some measures and potentially introduce other mitigations.
"I think it's important that we manage the resources of the country well, and we do so in a carefully considered and structured manner, and so this is an important set of decisions that we have to make," said Mr McGrath.
Asked if the temporary 9% Vat rate for the hospitality and tourism sector will be extended, Mr McGrath added: "That's a decision that has yet to be made. So the decision that was made last year in the budget was that would end at the end of February, along with a range of other measures."
Environment Minister Eamon Ryan has received Government approval not to oppose the Private Members Motion on energy costs and windfall taxes that will be debated in the Dáil on Wednesday.
He will say that the Government introduced a series of financial supports in Budget 2023 to ensure that nobody should go cold or be without necessary electricity and power this winter.
He will also say that the Government announced the decision in November to introduce measures to address windfall gains in the energy sector through the implementation of the European Council Regulation on an emergency intervention to address high energy prices.
The legislation to enact this Government decision is currently being progressed by the department, and should be introduced in the Dáil in the coming weeks.
This includes a cap on all market revenues of non-gas electricity generators such as wind and solar. It will apply from December 2022 to June 2023 inclusive, as set out in the European Council Regulation.
There is also a temporary solidarity contribution on fossil fuel production and refining companies that earn unexpected surplus profits in 2022 and 2023.
The proceeds can be used to the benefit of electricity consumers. This could include reductions in network charges or supports provided directly to consumers, similar to those already in place. The Government will determine, in due course, how best to distribute these proceeds, Mr Ryan will say.
The Government has always stressed that the amount of money raised by the measures would be at the lower end of projections if wholesale gas prices fall, as they have in recent months.
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